Channel 4 has agreed to place its linear channel and many television shows on Disney's streaming service, as traditional broadcasters struggle with changing viewing habits and the dominance of US media giants. Multiple Channel 4 shows will be available on Disney+ in the UK and Ireland at the same time as they are shown on Channel 4's main TV channel from early next year. Channel 4's main channel and additional on-demand content will be available separately on Disney+.
The deal is one of the most significant that Disney has agreed globally to bring local content to its streaming customers. Adam Smith, chair of direct-to-consumer at Disney Entertainment, said the deal is deeply complementary to both Channel 4 and Disney+, helping surface their best titles and bring them to new audiences. The deal raises questions about the sustainability of the UK's public service broadcasters, whose domestic audiences and advertising revenues have fallen sharply as more people watch on streaming services such as Disney+ and Netflix or via YouTube and social media.
Channel 4 said in September it would cut 340 jobs -- about a quarter of its workforce -- after a strategic review aimed at ensuring it is the right shape and size. The BBC is separately seeking to cut about a tenth of its more than 20,000 employees. Broadcasters have already agreed deals to move their content to rival services, with the BBC and Channel 4 showing their programmes on YouTube while also attempting to push their own streaming platforms.
ITV has already struck a deal with Disney to show some programmes on each other's platforms as a taster. ITV has agreed to sell its television business to rival Sky, which is owned by US media giant Comcast. Priya Dogra, chief executive of Channel 4, said the Disney deal was attractive because attribution to Channel 4 will be prominent and obvious to people watching Channel 4 programming.
The vast majority of Channel 4's programmes, including The Great British Bake Off and Gogglebox, are made by independent production companies. Smith added that Channel 4 demographics lean towards youth and edginess, and there is a real appetite for that on Disney+. The move comes as the government is in final talks to decide the future of the BBC's funding, which could include some form of streamer tax.
Source: Financial Times Companies · Summarized by HeadlinesBriefing